Stock market snapshot for 18/04/2025
Nasdaq-ADV: 3,533 Dec: 6,820 NYSE-ADV: 1,606 Dec: 2,536
(Source: Nasdaq)
US President Donald Trump has embezzled a global economic background, forcing large central banks to re -assess the next step.
Policy makers outside the United States now look more likely to cut interest rates than they will do the opposite – or in Japanese cases increasing it.
US federal reserves are in a difficult position.
The following is where the 10 central banks of the advanced market stand.
1/ Switzerland
The Swiss National Bank does not meet until June, but will be attractive, because the market expects him to cut the tariff to zero from 0.25%.
SNB said it would prefer not to go further and return to the negative level, but the Swiss francs that surged injuring the heavy export economy and could push Switzerland into deflation.
The Franc is the best advanced market currency since the announcement of the tariff for April 2 Trump. SNB policy tools that are often used by SNB, interference to weaken FRANC, can provoke Trump administration, which says the manipulation of currencies is one of the motivations for the tariff.
2/ Canada
Bank of Canada has an interest rate of 2.75% on Wednesday – its first pause after seven successive cuts – said they want more information about the impact of tariffs.
Governor Tiff Macklem said that uncertainty made it difficult to make economic predictions, note: “The forecast of economic growth is not much useful as a guide for anything.”
However, traders bet on the possibility of two more cuts at the end of the year.
3/ New Zealand
Reserve Bank of New Zealand cut the key level of 25 basis points to 3.5% last week, with a total of 200 bps easing since August.
New Zealand was exposed to China, allowing it to risk damage due to sustainable China-As trade war. The market expects about three more cuts this year, although Thursday data shows inflation that is higher than estimates.
4/ Sweden
Sweden left a 2.25% tariff in March and hoped to maintain it at this level for now.
Riksbank is already in the Dovish camp, alleviating the level of 4% to support a slow economy, but the market agrees with policy makers that further cutting is not possible.
Zone 5/ Euro
The European central bank cut interest rates for the seventh time a year on Thursday and signal more co -easter can follow.
It is said that the prospect of growth has deteriorated due to increased trade tension, and volatile market responses will likely cause financial conditions to tighten.
The main level of ECB is now 2.25% and the market is currently seeing two or three cuts of 25 bps this year.
6/ United States
The Fed has a dilemma because it expects tariffs to be lower in economic growth and encourage higher inflation.
It has left him in the waiting mode chair-and-seeing Jerome Powell said on Wednesday. The market expects Fed to withstand stable tariffs in May before continuing the later cutting.
Has been detained throughout the year, after cutting 100 bps in 2024. But until Trump stopped several “reciprocal” tariffs last week, traders have anticipated cutting next month to support growth. In further complications, Trump said the termination of Powell “could not come quite fast” on Thursday, and called for the US central bank to cut interest rates.
7/ English
The market sees an opportunity of more than 80% of a quarter point interest rate by Bank of England in May, and hopes to continue with a speed of about one-quarter for the remaining 2025.
Boe has cut slower than many colleagues, because he expects inflation to take. Colder print than March which is thought to have to give confidence to cut next month.
8/ Australia
Australia has only begun to subside in February, but the market now expects more urgency, seeing the opportunities for the greater 50 BPS movement in May and nearly 125 BPS slaughtering this year.
His economy was exposed to China-US trade tensions. China is the largest trading partner in Australia, so the market has increased the level of cutting when tension increases.
9/ Norway
The Norwegian central bank maintained an interest rate held at the highest 17 years of 4.50% last month, because the unexpected revival of inflation made policy makers postpone previous plans.
However, the market expects more cutting in June with more to be followed.
10/ Japan
Bank of Japan remains an outlier of advanced markets. This is in hiking mode, although the tariff has a complicated problem.
Governor of Kazuo Ueda said Boj might need to act if the tariff injured the economy, indicating they could stop the cautious interest rate increase, which had brought interest rates up to 0.5%.
However, it can cause appreciation for the new Yen to stop or even reversed, which has the potential to make Trump angry. Japanese officials have been afraid of the slow rate of interest rate increases from a very low level can get criticism in trade negotiations, even if it does not appear in the first round of the conversation.
Source: Reuters (reporting by John Square and Yadarisa Shabong, editing by Dhara Ranasinghe and Joe Bavier)
